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Shown below is selected information from the financial statements of Supreme Company Dollar amounts are in millions (except for the per share data). 28 Income statement information: Net sales Cost of goods sold Operating expenses Net income Balance sheet information: Average total equity Average total assets $ 1,110 $ 490 $ 410 $ 330 eBook $ 1,800 $ 3,400 Supreme reported earnings per share for the year of $5 and paid cash dividends of $2 per share. At year-end, the Wall Street Journal listed Supreme's capital stock as trading at $82 per share. Supreme's gross profit rate was: Multiple Choice 44.14%. O O 29.73% o 18.92%. O O 55.86% Given below are comparative statements of financial position (balance sheets) and an income statement for Claret Corporation. 29 eBook Claret Corporation Balance Sheets Year 2 December 31 Cash $ 15,000 Accounts receivable 46,020 Inventory 31,900 Equipment (net) 56,600 Total $ 149,520 Accounts payable 25,400 Dividends payable 7,200 Long-term note payable 13,700 Capital stock, $5 par 72,200 Retained earnings 31,020 Total $ 149,520 January 1 $ 15,000 36,500 35,800 65,700 $ 153,000 28,000 3,300 13,700 72,200 35,800 $ 153,000 Claret Corporation Income Statement For the year ended Year 2 Sales Cost of goods sold Gross profit on sales Operating expenses Operating income Interest expense and income taxes Net income $ 228,200 137,480 $ 90,720 75,808 $ 14,912 8,800 $ 6,112 All sales were made on account. Cash dividends declared during the year totaled $10,892. Claret Corporation's inventory turnover for Year 2 is: Multiple Choice 89.90 days. 3.84 times. O 4.31 times. 4.06 times

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